Halifax £5 Reward

jimjames

polymaff wrote: »

...and it will again.

And again.

Just like TSB interest payments. Month in, month out...

polymaff

jimjames wrote: »

Just like TSB interest payments. Month in, month out...

It's an ill wind that blows nobody any good.

One useful aspect of all of these threads is that one can surmise that Barclays Blue Rewards has been a bit of a flop with MSEers?

Westie983

Its always been a reward payment and not interest.

This has been discussed to death, especially when the new tax year started.

If you are a non tax payer you can get you £1.25 each month back by filling out a R40, which I do each year, when the annual certificate is received.

xylophone

by filling out a R40,

Which is entitled

Claim for repayment of tax deducted
from savings and investments

Strictly speaking the above should be expanded to "interest on savings and investments" since the tax is not deducted from the savings?

The tax deducted from the Reward is tax deducted from "other income" for which there is a box on the R40 but only for the same purpose as there are boxes for salary/pensions etc ( to establish income other than savings before savings band etc allowed).

Strictly speaking a tax return should be completed (?) although I don't suppose it matters to HMRC on way or the other......;)

Westie983

I never filled out a tax return just R40 and R85's.

I don't earn enough to pay tax now and when I did it was taken via PAYE, but as I don't have experience in tax returns I cant help there, but R40's have led to me getting the £15 taken from the reward payment back each year.

This is also mentioned in the T&C's of the reward accounts, If you are a non tax payer it can be claimed back from HMRC, even before the change to the PSA came in.

derrick

Cisco001 wrote: »

anyone had annual statement from Halifax?

I seems to remember they classify the 'reward' as 'interest'??

One of mine from last year, this years not yet received:-





.

polymaff

derrick wrote: »

One of mine from last year, this years not yet received:-





.

Interesting. My Reward certificates for 2015/16 carry no reference to s975, which - the payment not being interest - is how it should be.

bowlhead99

polymaff wrote: »

Interesting. My Reward certificates for 2015/16 carry no reference to s975, which - the payment not being interest - is how it should be.

Section 975 is not about interest. It is simply the legal requirement to supply someone with, on request, a statement which shows gross, tax deduction and net, if you have made a payment to them where you had to deduct an amount for income tax.

As you know, that obligation to withhold income tax applies to interest but also to other things like this reward payment, royalties etc paid to individuals. As such, s975 applies to those payments too, because they are payments under which tax was required to be deducted. It is not just for interest payments.

Some banks will explicitly say the reason you're getting the statement is as part of them meeting their obligations under s975, so they can say they definitely met their obligations and charge you if you want another one. Some will not. Some will change from time to time whether they declare it as being delivered under that section or don't. Some will send automatically and others might need prompting.

Going forward for 2016/17, bank interest won't have tax deducted so s975 will not be applicable to bank interest, so a statement is not required. Some banks might continue to produce them voluntarily for client service reasons because many customers will want some sort of tax year end statement to cross check how much interest they earned anyway. Halifax will still be deducting from the reward payments so will still have to produce one under s975 if asked and may continue to routinely send them out if it's easier than dealing with ad hoc requests

Section 975
Statements about deduction of income tax

(1)Subsection (2) applies if a person makes a payment from which a sum representing income tax must be deducted under any provision of Chapters 2 to 7 or under section 919 or 928.

(2)If the recipient requests it in writing, the person must provide the recipient with a statement showing—

(a)the gross amount of the payment,

(b)the amount of the sum deducted, and

(c)the actual amount paid.

polymaff

bowlhead99 wrote: »

Section 975 is not [just] about interest......

Amended point taken.

I hope that certificates will still be issued. They'll still have value as part of monitoring one's tax liabilities; in future, even more so, once HMRC implements its "The End of Self-Assessment" regime and pre-populates your declaration for you.